Northern,WI  10/22/2012  (BasicsMedia)  —  SuperValue (NYSE:SVU): +22% Private Equity to Swallow Groceries and it would make sense that they would go after this grocery chain.  There has been little news about the “take under” and you need to really dig deep into the message boards for clues about hiring and any trail which signals details of this PE take under.  The larger concern is the number of companies who are getting off the ship of being a public company.

In an update of its “strategic review,” the company reported this week that “The Company has received a number of indications of interest and is in active dialogue with several parties. There can be no assurance that this process will result in any transaction or any change in the Company’s overall structure or its business model.”

If you don’t know Supervalue they  operate retail and wholesale food stores in the United States. Its stores primarily sell perishable and nonperishable grocery, general merchandise, health and beauty care products, fuel, and pharmacy products to shoppers, independent retail customers, single and multiple grocery store independent operators, regional and national chains, mass merchants, and the military.

Supervalu is one of the largest companies in the U.S. grocery channel with annual sales of approximately $35 billion. The company reported a second quarter fiscal 2013 loss of $111 million compared to a profit of 60 million in the year-ago quarter. Supervalu reported on Thursday that they are in active talks regarding the possible sale of the company.

The company conducts its retail operations under the Acme, Albertsons, Cub Foods, Farm Fresh, Hornbacher’s, Jewel-Osco, Lucky, Save-A-Lot, Shaw’s, Shop ‘n Save, Shoppers Food & Pharmacy, and Star Market banners; and in-store pharmacies under the Osco and Sav-on banners. It also offers logistics services; and facilitative services, including sourcing, invoicing, and payment services between its independent retailers and vendors. As of September 05, 2012, it served customers through a network of approximately 4,400 stores comprising 1,101 traditional retail stores, including 798 in-store pharmacies; 1,336 hard-discount stores consisting of 939 operated by licensee owners; and 1,950 independent stores serviced primarily by its traditional food distribution business. The company was founded in 1871 and is headquartered in Eden Prairie, Minnesota.

Shares of SUV have declined most of 2012 and are off smartly since the start of the year.  Click here for a look at 2012 chart.  Expect to see Private Equity active in 2013 and beyond as Sarbanes Oxley costs continue to hamper companies remaining public.

Disclaimer:  We have no position in any stock mentioned here, nor are we paid to write about them

 

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